ArcelorMittal Flat Carbon Europe posts operating loss of euro 366 million

KOLKATA: ArcelorMittal has said its flat steel products business in Europe suffered an operating loss of euro 366 million in the fourth quarter of 2013. Flat steel products are used to make consumer durables and automobiles. The company said operating performance in the fourth quarter was impacted by net restructuring charges of euro 236m, primarily as a result of industrial and social plan in Liege and review of Florange primary production in France.

The loss in Q4 2013 went up on a sequential basis compared to an operating loss of euro 131m in Q3 2013. Production of crude steel at the Flat Carbon Europe segment too remained flat compared to Q3 2013, at 7.4 million tonnes. The company's steel shipments in Q4 2013 were at 6.7 million tonne, an increase of 1.6% as compared to the previous quarter, due to a mild pick- up in demand following the seasonally weak third quarter. Sales in the Flat Carbon Europe segment also increased by 0.8% to euro 4.83 billion, compared with euro 4.78 billion in the third quarter, primarily due to higher steel shipment volumes.

Commenting on the performance, Geert Van Poelvoorde, CEO Flat Carbon Europe, said: "With a recovery in underlying steel demand and mild restocking, we expect to see European steel demand rise by around 2% in 2014."

In a statement issued on Friday, the company said, "growth will remain fragile in 2014 especially in southern Europe, constrained by a continued fall in credit availability and a high (although recently stabilising) unemployment rate which will continue to put pressure on consumer spending.

Automotive sales grew by 6% year on year in Q4 2013, with strong growth in December 2013 sales led by the UK and Spain. However for the full year 2013, sales contracted by 1.7% year on year."